Health check of your MYOB AccountRight file..
One of the time consuming activities of MYOB consulting is digging for dirt and uncovering entries which have gone astray in clients data files. Just because something is entered, allocated and now out of sight doesn’t mean it’s right. An MYOB accounts person should take a half day out every year to to the following check up.
Follow the steps below..
- Bank reconciliations: have you been doing reconciliations on every single bank, savings and credit card and loan accounts? Do you have an undeposited funds or electronic clearing account with a balance of thousands when it should be $0? Do you have PAYE payable with a debit balance when it should be credit.
- Again on the subject of bank reconciliation – look at all entries that are more than 6 weeks older than your last bank rec. date. These are called stale transactions. Investigate each one and sort it out. Are there duplicate entries? Are they genuinely un-presented by your supplier, is the cheque lying in your drawer, is it an accountants end-of-year adjustment, did you pocket the cash or what? Find the culprit, delete, reverse or correct.
- Bank Feeds: Check all of your bank feed entries have been dealt with. They should either have been allocated or matched. If there are old entries there and you have reconciled then hide the bank feed entries.
- Post-dated transactions; Review the Transaction Journal (All) from today’s date to 31/3/2040 or find the equivalent report under exceptions reports. Are there any transactions which are future dated (we regularly find entries dated 20 years in the future!) Find them, re-date them watching for unclaimed GST and/or an income tax deduction.
- Prepaid Transactions: Go to Reports, Account, Exceptions, Prepaid Transactions report. Run for your current financial year e.g 1/4/16 – 31/3/17. If you have any on the list then these have payment dates before the invoice date. Shouldn’t happen and gives you an out of balance if the entry is over financial year-end.. Kick the habit or if you really do have payments before order then start putting your payments against sales orders or purchase orders as opposed to invoices.
- Debtor and Creditor balances: Run the Receivables, Reconciliation Detail report (dated today) and check each amount is still unpaid. It is easy to confuse ‘Receive Money’ instead of ‘Receive Payments’. On the creditors side, run the Payables, Reconciliation Detail Report and check each amount is still unpaid. The likely scenario is to use ‘Spend Money’ and not ‘Pay Bills’. Open the invoice and either delete, reverse or correct.
- Run the General Ledger Detail report for all Profit and Loss accounts for the current financial year. Check the contents of each account. Are entries in the right account?
Give yourself a pat on the back. This is a big job but someone has to do it….you!
